FISCAL NOTE

Date Requested: January 10, 2018
Time Requested: 02:19 PM
Agency: Education, WV State Board of
CBD Number: Version: Bill Number: Resolution Number:
1019 Introduced SB9
CBD Subject: Education (K12)


FUND(S):

0313

Sources of Revenue:

General Fund

Legislation creates:





Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


The estimated cost to the State in FY2019 for the proposed legislation is $5,305,960.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2018
Increase/Decrease
(use"-")
2019
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 5,305,960 5,305,960
Personal Services 0 0 0
Current Expenses 0 5,305,960 5,305,960
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 0


Explanation of above estimates (including long-range effect):


The proposed legislation captures the decrease in the state aid funding due to the decrease in net enrollment from the preceding school year and dedicates those funds to the allowance for exceptional students with high-cost/high-acuity special needs, limited to the amount that the combined state and federal funding for that purpose was insufficient to reimburse all eligible county boards fully for those costs in the most recent year available. The overall reduction in state aid funding due to the decrease in net enrollment is calculated to be $9,904,210.41 for FY19. This number was calculated by multiplying the decline in net enrollment of 2,467.97 FTE (between the 2016-17 school year and the 2017-18 school year) by the average net state aid per pupil for the 2017-18 school year of $4,013.10 per pupil. However, the full amount of the decline in state aid funding due to the decrease in enrollment is not needed for the FY19 high cost/high acuity funding. The amount of funding needed for FY19 of $5,305,959 is based on the 2017 high cost/high acuity grant funding cycle, which is the most recent year available. For the 2017 grants to county boards of education, WVDE received applications with costs for eligible students totaling $7,643,376 statewide. The amount of federal funding available was $837,417 and the amount of state appropriations available was $1,500,000 for a total of $2,337,417 of available funding. An additional $5,305,960 ($7,643,377 less $2,337,417) would have been needed to fully fund the requests from the county boards of education in the 2017 year. Note that the amount of funding needed for high cost/high acuity students varies each year based on the student population, number of county boards of education submitting grant applications, and average per pupil expenditure for regular education students. Therefore, WVDE is unable to predict the maximum amount of funding that would be needed for this purpose in any given year. Additionally, since the inception of the state funding for high acuity during FY2009, the largest amount of unfunded grant requests received was the Fiscal Year 2017 amount of $5,305,960. This fiscal note assumes that the full $1,500,000 previously appropriated for this purpose will again be appropriated during FY19.



Memorandum






    Person submitting Fiscal Note: Brenda Freed
    Email Address: bfreed@k12.wv.us